Global Sales Down for McDonald’s in January (MCD)
Fast food giant, McDonald’s Corporation(MCD) reported a decline in January global sales on Friday.
Global sales for January dropped -1.9% for MCD, falling further than estimates of -1.1%. Europe declined -2.1% last month, while sales in the Asia/PaciTfic, Middle East, and Africa declined -9.5%. On the upside, U.S sales climbed 0.9%.
For the U.S., sales were aided by an increased amount of options offered to customers, including the new Grilled Onion Cheddar burger which was added to the dollar menu. January’s sales also saw an upside due to the restaurant chain’s convenience and modernized strategies, which adapted well in the American society.
While sales in the U.K and Russia did well in January, they were offset by declined sales in Germany, France, and other European markets. MCD focuses on appealing to various target markets by offering a wide variety of options for customers, including seasonal items.
Weak sales in the Asia/Pacific, Middle East, and Africa division dropped mainly due to a drop in sales in Japan and China. The timing of the Chinese New Year as well as supply chain problems negatively affected sales for the region.
McDonald’s shares were mostly flat during premarket trading Friday. The stock has declined -5% in the past year.
The Bottom Line
Shares of McDonald’s Corporationp(MCD) have a 3.25% yield, based on Thursday’s closing price of $94.63.
McDonald’s Corporation(MCD) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.4 out of 5 stars.
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